Engineering & Mining Journal

AUG 2017

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Page 17 of 99

REGIONAL NEWS - ASIA
16 E&MJ • AUGUST 2017 www.e-mj.com
Eldorado Provides Update on Ki ladağ
Eldorado Gold provided an update on
its Ki ladağ gold mine in Turkey. A low-
grade, bulk-tonnage, open-pit operation
that uses heap leach for gold recovery,
Ki ladağ has been in operation since
2006 and is Turkey's largest gold mine.
While the mine has placed the expect-
ed amount of ore on the leach pad, the
gold solution grade and, consequently, gold
recovery from the leach pad has recently
lagged projections. Recent laboratory and
in situ tests where solution chemistry has
been adjusted have indicated normal re-
covery rates are still expected. More time,
however, is now required to adjust the
overall pad solution chemistry and allow
solution to flow through the current stack
height of the leach pad, which is at approx-
imately 80 meters (m) at the highest point.
"While Ki ladağ's decrease in produc-
tion for the year is disappointing, our team
has implemented a strategy to return our
cornerstone asset to normalized produc-
tion levels," said George Burns, president
and CEO, Eldorado Gold. "We felt it pru-
dent to inform the market of this informa-
tion regarding Ki ladağ in view of our cur-
rent agreement with Integra Gold Corp."
Ki ladağ is now expected to produce
approximately 38,400 ounces (oz) of gold
in the second quarter of 2017 and approx-
imately 90,000 oz of gold for the first half
of 2017. As such, Ki ladağ will not meet
the Eldorado's original 2017 guidance of
230,000 oz to 245,000 oz. The compa-
ny now expects 2017 gold production of
180,000 oz to 210,000 oz from Ki ladağ
with cash costs in the new guidance range
of $450/oz to 500/oz. The ounces that are
not produced in 2017 are expected to be
produced in the first half of 2018.
Macmahon Approves Batu
Hijau Transaction
At a general meeting held in Perth on June
9, Macmahon shareholders voted over-
whelmingly in favor of a proposed trans-
action with Indonesian-based mining com-
pany PT Amman Mineral Nusa Tenggara
(AMNT). The AMNT transaction will see
Macmahon awarded a life-of-mine, alli-
ance style contract to provide earthmoving
and mining services at AMNT's Batu Hijau
copper-gold mine in Indonesia. Macmahon
will acquire existing mobile mining equip-
ment from AMNT and will, in return, issue
new shares to a subsidiary of AMNT.
"The Macmahon Board is very pleased
with today's result," said Chairman Jim
Walker. "Maximizing value for all share-
holders is of utmost importance to us
and we firmly believe this transaction is
a compelling opportunity for Macmahon
and its shareholders."
"We are extremely grateful for the sup-
port and encouragement provided by our ex-
isting clients," said Macmahon CEO Michael
Finnegan. "We remain absolutely committed
to delivering on our promise wherever we are
operating, and look forward to building on
these excellent working relationships."
The completion of the AMNT transaction
remains subject to the satisfaction of two
remaining conditions precedent. Macma-
hon expected those conditions precedent to
be satisfied shortly and for the AMNT trans-
action to completed before the end of July.
Centerra Provides Update
on Arbitration
An arbitrator has issued an order providing
certain interim relief to Centerra Gold in
its ongoing arbitration against the Kyrgyz
Republic and Kyrgyzaltyn JSC in connec-
tion with the Kumtor project. The interim
relief, among other things, orders the Kyr-
gyz Republic to give 30 days' prior notice
to the arbitrator and Centerra in the event
of resumption of the claims brought by Kyr-
gyz government entities in Kyrgyz courts
relating to alleged environmental harm,
dividends and land use; directs the Kyrgyz
Republic to give immediate notice to the
arbitrator and Centerra if any procedural
action is taken in the Kyrgyz court proceed-
ings; and orders the Kyrgyz Republic to use
its best efforts comply with her decision.
In addition, the arbitrator found that
Centerra had made out both a prima facie
case for the arbitrator to take jurisdiction
over the arbitration proceeding; and a prima
facie case on the merits of the case. Such
findings relating to jurisdiction and merits
support Centerra's view that the Kyrgyz
court proceedings are disputes that should
be brought in international arbitration and
may not be brought before the courts of the
Kyrgyz Republic. Centerra further believes
that the court claims are without founda-
tion or substance on the merits.
Centerra will continue to pursue its
claims in its main arbitration proceeding,
which was commenced in May 2016 and
remains ongoing. Responses to Centerra's
statement of claim are expected to be sub-
mitted by the Kyrgyz Republic and Kyr-
gyzaltyn in September 2017. In the mean-
time, Centerra and the government of the
Kyrgyz Republic continue discussions with
to settle all outstanding matters relating to
the Kumtor project.
An aerial photo shows the size of the Ki ladağ pit in Turkey.